The term "concessional" is an adjective that describes something related to or involving a concession. A concession, in general terms, refers to the act of giving in or yielding to something during a negotiation or agreement. It often involves making a compromise or granting certain privileges or benefits.
When used in a financial context, "concessional" refers to loans, interest rates, or terms that are more advantageous or favorable than the average or prevailing rates. Concessional loans are offered to individuals, businesses, or governments at lower interest rates, longer repayment periods, or with more lenient terms compared to standard commercial loans, thereby providing financial assistance or support.
In international development, "concessional" is commonly used to describe aid, grants, or funding resources that are provided by developed countries or international organizations to support developing nations. These concessional funds are aimed at promoting economic growth, reducing poverty, and improving living conditions in the recipient countries. They might be provided as low-interest loans, grants, or as technical assistance to facilitate infrastructure projects, education programs, healthcare initiatives, or other developmental activities.
Overall, "concessional" denotes a special arrangement or condition that allows for certain advantages or benefits, usually in the form of financial assistance or support, usually granted to help stimulate growth, address economic disparities, or foster cooperative relationships between entities or countries.
